Ethereum Price Drops 3% After Clarity Act Fails to Pass Senate
Ethereum's price dropped around 3% over the past week following the failure of the Clarity Act to pass in the Senate, which analysts had touted as a major tailwind for the second-largest cryptocurrency. The bill was expected to trigger a rally, but its defeat has left ETH reeling.
The failed vote resulted in a significant decline in Ethereum's price, with it dipping to $2,388 after the CLARITY Act failed and then rebounding to $2,400 shortly after. This was followed by heavy selling in US-listed spot Ethereum funds, which recorded their largest outflow since January on Tuesday as the bill stalled.
CryptoQuant's exchange data also showed a large influx of ETH moving into Binance on September 11, four days before the vote, which can signal that more coins are becoming available for potential selling. However, this does not necessarily mean those coins were sold.